Soda Tax to Improve Quality of Life?

Berkeley recently approved the nation’s first soda tax in an effort to encourage community wellness. What innovative policies could boost quality of life for your residents?

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What Happened?

Berkeley recently approved the nation’s first soda tax, demonstrating a trend toward more health-focused policies to encourage community wellness.

Goal

Berkeley’s Measure D was created in an effort to “diminish the human and economic costs of diseases associated with the consumption of sugary drinks” by taxing the purchase and distribution of the drinks and products used to make them. A Sugar Sweetened Beverage Product Panel of Experts will be recruited to make recommendations on how Berkeley will fund other programs focused on eliminating high-calorie, low nutrition drinks in the community. The revenue generated from the tax will go toward the general governmental needs of Berkeley residents.

Details

The Measure D tax levies $0.01 per fluid ounce on the purchase of any sugar-sweetened beverage on a list of predetermined products. The measure is an excise tax, not a sales and use tax and shall be paid upon the first non-exempt distribution of the beverage in the city.

The Context

Proponents of Measure D laid out a long list of arguments against sugary beverages, and the economic impact unhealthy food consumption has had on communities across the country. The rising rates of obesity, diabetes, tooth decay and other health concerns has subsequently driven up the cost of healthcare for households and employers.

The number of children, specifically, developing type 2 diabetes is increasing rapidly, while childhood obesity has more than doubled in the past 30 years due to greater access to unhealthy foods. For children in California, 91 percent consumed sugary drinks in 2008, compared to 79 percent in 1989, and the percentage of total calories obtained from sugary drinks jumped 60 percent between children 6 to 11 years old.

Designing Healthy Lifestyles

Eating healthier is one of a two-part recipe for healthy living which also requires regular exercise. Some cities are implementing policies to encourage residents to depend less on cars and navigate via bikes and walking more often.

Oklahoma City, for example, is embracing a healthy approach to urban design that integrates physical activity into the everyday lives of citizens. The MAPS-3 program is a 10-year strategy to roll out eight different projects focused on the health and quality of life of residents. Some of the projects in progress include:

  • Extending sidewalks
  • Building a streetcar rail
  • Repairing existing trails
  • Building out new trails
  • Developing a downtown park
  • Constructing a pedestrian bridge
  • Expanding access to green spaces

In addition, Oklahoma City is building a new whitewater rafting and kayaking center that will accessible to all residents and double as a training center for Olympic athletes. These types of developments offer double benefits in wellness and economic growth.

The MAPS-3 program will be funded by a limited term, one-cent sales tax that will raise $777 million to cover the costs of healthy design initiatives. Once the projects are completed, the city expects to attract talented millennials – who seek a more pedestrian-friendly environment - to the city to boost economic growth and sustainability.

Healthy Projects

Gov1 has reported on several unique projects that aim to improve the wellness of citizens and encourage a more health-focused economy.

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